358 Keane to Chifley

Cablegram 1150 [1] WASHINGTON, 23 November 1944, 8.27 p.m.

MOST IMMEDIATE SECRET

Lend Lease Stage 2. Following for Chifley from Keane.

1. Yesterday, as a result of the Conference with the U.K.

delegates, the U.S. State and War Depts. and ourselves, we cleared the point of difficulty on extension of the area for reciprocal aid.

2. It was necessary to concede that where for strategic reasons it is necessary to transfer to other areas supplies which have already been provided to the local U.S. Command, no objection would be raised to the transfer.

3. I do not think this of great importance as it will still leave the whole of requisitioning and allocations on a South West Pacific Member Command basis. It is in line with the proposal mentioned in McFarlane's telegram 1847. [2] We have been under considerable pressure on extension of Mutual Aid and I think that we have been fortunate to clear it with only this limited concession.

4. Stage 2 programmes have been cleared and it is expected that all finalities will be completed this week.

5. Full text of a draft note which we put in as a statement of the Australian reciprocal aid position follows in a separate cable.

[3]

6. No publicity should be given to Stage 2 until you hear further from me.

1 Sent through the Legation in Washington.

2 Dispatched 18 November. On file AA:A571,L42/1303, vi.

3 Cablegram 1151, dispatched 23 November. On the file cited in note 2.

[AA:A574 L42/1303, vi]